$MSI · Motorola Solutions, Inc.
Motorola Solutions reported Q3 FY2026 (ended Oct 3, 2026) results: sales of $3.376B, up 12% YoY from $3.009B. GAAP EPS was $3.06 (down 8% from $3.33) and non-GAAP EPS was $4.69, up 16% from $4.06. GAAP operating earnings rose 1% to $777M, while non-GAAP operating earnings rose 19% to $1.096B. The company raised full-year revenue guidance to ~$13.050B (from $12.975B) and non-GAAP EPS to $17.94–$17.99 (from $17.62–$17.72), and increased full-year operating cash flow expectations to $3.050B.
- Record ending backlog of $16.6B, up 14% ($2.1B) YoY on record Q3 orders.
- Non-GAAP EPS of $4.69 beat year-ago $4.06, up 16%.
- Announced a $2B increase to the share repurchase authorization.
- Closed D-Fend acquisition for $1.3B net of cash, funded partly by $950M senior notes.
- Recognized a ~$70M favorable tariff-refund adjustment in cost of sales during nine months.
Extended-hours last trade $497.00, +0.15% vs regular close of $496.24; markets closed with no regular-session reaction since filing. The muted move suggests the raised guidance was largely anticipated.
A second consecutive full-year guidance raise plus record backlog and a $2B buyback expansion signal durable demand momentum despite supply-chain cost headwinds.
Double-digit growth across both segments and all three technologies (MCN, Video, Command Center) underscores sustained public-safety and security demand, with counter-drone (D-Fend) and AI video (DeepNeuronic) acquisitions extending the portfolio.
Rising memory costs driven by AI demand and evolving tariffs/import-export rules are pressuring supply chain costs; the company expects inventory to remain elevated. GAAP operating margin fell to 23.0% from 25.6% on a higher Silvus contingent earnout.